G-bits Network Technology Co., Ltd. (Stock Code: 603444) was established in 2004, focusing on the research and operation of online games. The company is committed to gathering and cultivating innovative talents, pursuing efficient work methods, providing differentiated products and services to global users, and creating and disseminating wonderful experiences in the entertainment field. The company has successfully developed games such as 'The World of Legend' (Wendao), 'The World of Legend Mobile' (Wendao Mobile), and 'One Thought Nirvana' (Yi Nian Xiao Yao), which are rooted in traditional Chinese culture.
In the mid-year report of 2024, G-bits displayed total assets of 6.942 billion yuan, a year-on-year increase of 4.59%. Total liabilities were 0.14 billion yuan, slightly higher than the beginning of the period, and the asset-liability ratio decreased from 20.93% at the beginning of the period to 20.11%. The return on equity (ROE) was 11.58%, demonstrating the company's stability in asset management.
In terms of profit, the company's operating income for the first half of 2024 was 1.96 billion yuan, a 16.57% year-on-year decrease. Among them, 'The World of Legend' (Wendao) generated 656 million yuan in revenue, a 16.31% year-on-year increase; 'The World of Legend Mobile' (Wendao Mobile) generated 1.155 billion yuan in revenue, a 14.66% year-on-year decrease; and 'One Thought Nirvana (Mainland China Version)' generated 311 million yuan in revenue, a 54.81% year-on-year decrease. Overall, the combined revenue of the three main products accounted for 71.19% and 68.17% of the company's operating income, respectively. Net profit was 625 million yuan, a 31.88% year-on-year decrease. The gross margin was 88.22%, slightly lower than the 88.52% of the same period last year. The net margin was 31.88%, a decrease from 38.05% in the same period last year.
In terms of cash flow, the net cash flow from operating activities was 594 million yuan, a 1.22% year-on-year decrease. The subtotal of cash inflows from operating activities was 2.188 billion yuan, an 11.02% year-on-year decrease; and the subtotal of cash outflows was 1.594 billion yuan, a 14.20% year-on-year decrease. The net cash flow from investing activities was -0.51 billion yuan, showing improvement from the same period last year. The net cash flow from financing activities was -0.339 billion yuan, a reduction of 8.14% year-on-year.
Overall, in the first half of 2024, G-bits faced certain challenges, primarily reflected in the decline of operating income and net profit. However, the company's performance in 'The World of Legend' (Wendao) and overseas markets was quite impressive, indicating potential growth. The company's continued investment in research and operation, as well as its active expansion into overseas markets, is expected to provide strong support for future development.